This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Tax Talk Tempers Boost From Caterpillar's Predicted Buyback: StockTwits

NEW YORK (TheStreet) -- Caterpillar's (CAT) stock jumped today after analysts argued that the company could repurchase 35 million shares in the next few years.

Barclays' analysts wrote in a note yesterday that the global construction equipment company could generate enough free cash flow to buy back 35 million shares in three years, adding up to $1.20 of earnings per share by 2016. Barclays' analysts also boosted their price target to $112 from $107, according to the Analyst Ratings Network.

Caterpillar's PT raised by Barclays to $112.00. http://stks.co/j0SEs $CAT -- Analyst Ratings Network (@AnalystRatingsNetwork) Apr. 1 at 01:09 PM

The stock rose more than 2% today after climbing yesterday. Sentiment on the stock is 76% bullish, according to StockTwits' analytics.

$CAT is getting closer to intrinsic value @ $116. Some room left, but not much http://stks.co/r0Ad5 -- Eugene Art (@StoxValue) Apr. 2 at 02:32 PM

Some cashtaggers said that the climb was overdone. It wasn't as though the company announced a new revenue source, they argued. And Caterpillar could decide it wants to do something else with its free cash besides repurchase shares.

$CAT buybacks, not fundamental changes, http://stks.co/q0APn -- Jimi Zen (@JimiZen) Apr. 2 at 01:41 PM

Caterpillar management's testimony before congress this week tempered enthusiasm for a projected buyback. Caterpillar executives told a senate panel that the company pays its fair share of taxes, even if much of Caterpillar's profits go through a Swiss subsidiary with a much smaller negotiated tax rate than the prevailing U.S. corporate tax rate.

The Senate committee responded by blasting the company for setting up a tax shelter.

$GM $CAT both down a bit #premarket even though broader market likely to open higher. Congressional hearings not good for shareholder value. -- Paul La Monica (@lamonicabuzz) Apr. 1 at 08:23 AM

Taxes are a major issue for U.S. corporations. The United States will charge about 40% this year, according to data compiled by audit and tax advisory firm KPMG. Switzerland, for comparison's sake, has a tax rate of just under 18%. Places such as Ireland, Cyprus, Gibraltar, Lithuania, Latvia, Jordan and Kuwait have a rate under 15%.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs